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How Do Other Countries Handle Bankruptcy  
User currently offlineMCOtoATL From United States of America, joined Sep 1999, 474 posts, RR: 4
Posted (11 years 10 months 1 week 1 day 9 hours ago) and read 1150 times:

With United Airlines declaring Chapter 11, many people in the US are obviously unclear about this process. United Airlines is not going out of business; chapter 11 provides some protection form creditors as the carrier seeks to restructure.

This made me wonder about how US bankruptcy compares to that of other nations. Do struggling carriers simply disappear in various countries, or are their steps to try to turn the tide?

4 replies: All unread, jump to last
 
User currently offlineIkarus From United Kingdom, joined Jan 2001, 3524 posts, RR: 2
Reply 1, posted (11 years 10 months 1 week 1 day 6 hours ago) and read 1131 times:

The general procedure:

Liquidation. Complete disappearance of the airline, often overnight, sometimes leaving pax stranded all over the place (the old Germanwings, for example)

If it's a former national carrier in Europe:

Bail-out by the government.

Chapter 11 is quite a good thing. Quite useful. The Economist just had an article about all its advantages and why other countries should adopt the system...

Regards

Ikarus


User currently offlineBackfire From Germany, joined Oct 2006, 0 posts, RR: 0
Reply 2, posted (11 years 10 months 1 week 1 day 5 hours ago) and read 1128 times:

You'll only get a bail-out by the Government in Europe if the EC allows it, and they're not known for charity work. Look at the Olympic situation.

User currently offlineJj From Algeria, joined Jun 2001, 1227 posts, RR: 2
Reply 3, posted (11 years 10 months 1 week 1 day 4 hours ago) and read 1110 times:

I understand here in Argentina, airlines first go into "concurso de acreedores" , which is an equivalent of Chapter 11. If no solution is found, they are liquidated (Chapter 7).

FYI: Aerolineas Argentinas, Austral, LAPA (Prev. known as ARG, then as AIRG) have all been operating under concurso de acreedores for more than an year...


User currently offlineLuisca From , joined Dec 1969, posts, RR:
Reply 4, posted (11 years 10 months 1 week 1 day 3 hours ago) and read 1092 times:

Here in panama if you cant pay up you simply say BYE BYE. Unlles you can personally negotiate with the creditors to save your buissenes, goverment bail outs are banned by the constitution, but you got 4 months of grace period if you cant pay up.

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